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LSDefine

Simple English definitions for legal terms

too big to fail

Read a random definition: ex paritate rationis

A quick definition of too big to fail:

Term: Too big to fail

Definition: When something is so important to a financial system that the government won't let it go bankrupt because it would cause big problems for the economy. For example, in 2008, the government gave money to big banks and car companies because they were too important to let fail.

A more thorough explanation:

Too big to fail

When a company or organization is so important to the economy that the government won't let it go bankrupt. This is because the consequences of its failure would be too severe for the economy as a whole.

During the 2008 financial crisis, some banks and car companies were considered "too big to fail." The government provided them with bailout funds to keep them from going bankrupt. This was because if they had gone bankrupt, it could have caused a domino effect that would have hurt the entire economy.

Another example is the airline industry. If a major airline were to go bankrupt, it could cause chaos in the transportation industry and have a ripple effect on other industries that rely on air travel.

The examples illustrate the definition of "too big to fail" because they show how the failure of a company or organization can have a significant impact on the economy as a whole. In these cases, the government steps in to prevent the failure because the consequences of the failure would be too severe for the economy.

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JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
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